Sprint had attacked the merits of the complaint and the retroactive application of the August 2010 amendments to the NY FCA that authorized actions based on tax fraud. A detailed discussion of the trial court’s June 2013 opinion is available here. Sprint then appealed.

The court also properly rejected defendants’ argument that the New York False Claims Act with respect to statements made under the Tax Law should not be given its stated retroactive effect. Defendants fail to show that the Act’s sanction of civil penalties, including treble damages, is so punitive in nature and effect as to have its retroactive effect barred by the Ex Post Facto Clause (U.S. Const., art. I, sec. 10).”

That same day, New York Attorney General Eric T. Schneidermann issued a press release, in which he stated: “Today’s decision allows my office to proceed in holding Sprint accountable for deliberately evading sales taxes and costing state and local governments approximately $130 million.”

We will bring you further developments in this case, which may include Sprint’s appeal to New York’s highest court – the New York Court of Appeals.